Dollar Index Renews Strength As Fed`s Bowman Suggests Additional Increases Will Likely Be Needed To Meet FOMC`s Inflation Goal

Published on Aug 08, 2023 10:29

The dollar index is seen firmly rising on Tuesday after Federal Reserve Governor Michelle Bowman said yesterday that the US central bank may need to raise rates further in order to fully restore price stability. �Additional rate increases will likely be needed to get inflation on a path down to the FOMC`s 2% target,� Bowman said. This rise comes following a pull back on Friday after US jobs data pointed at an easing labor market that could influence Federal rate hikes. However, higher US treasury yields with the 10-year benchmark hovering above 4% is seen dragging dollar higher. The dollar index that measures the greenback against a basket of currencies is currently trading at 102.14, up 0.27% on the day. US inflation data due this week is carefully watched for further cues. Among the basket currencies, EURUSD is managing to hold just above the crucial $1.10 mark but currently quoting at $1.1007, down 0.2% on the day. Meanwhile, GBPUSD is also trading on the back foot, down by 0.2% at $1.2762.